PACS DIGITAL AUTOMATION FRAMEWORK

Why in news

The Government has approved and expanded a Centrally Sponsored Project for Computerisation of functional Primary Agricultural Credit Societies (PACS) and also approved the World's Largest Grain Storage Plan in Cooperative Sector, which involves PACS.

Exam relevance

GS2, GS3 · Governance, Economy, Society, Disaster Management · Prelims · Mains

Key facts

1. The Government has approved the Centrally Sponsored Project for Computerisation of functional Primary Agricultural Credit Societies (PACS).
2. The project aims to bring all functional PACS on a common ERP-based National Software to improve operational efficiency, transparency, and service delivery.
3. Initially approved for 63,000 PACS, the project has been expanded to cover 79,630 PACS.
4. The total financial outlay for the computerization project is ₹2,925.39 crore.
5. The project has been implemented in a phased manner across States/UTs.
6. The Government also approved the World's Largest Grain Storage Plan in Cooperative Sector.
7. This storage plan entails creation of various agri infrastructure at PACS level, including warehouses, custom hiring centers, processing units, and Fair Price Shops.
8. The grain storage plan utilizes convergence of various existing Government of India schemes such as Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Sub Mission on Agricultural Mechanization (SMAM), and Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME).
9. Under the World’s Largest Grain Storage Plan in Cooperative Sector, 1,015 PACS are involved.

Prelims pointers

• Computerisation of PACS is a Centrally Sponsored Project.
• The objective of PACS computerization is to bring them on a common ERP-based National Software.
• The project aims to improve operational efficiency, transparency, and service delivery of PACS.
• The financial outlay for the PACS computerization project is ₹2,925.39 crore.
• The World's Largest Grain Storage Plan in Cooperative Sector involves PACS.
• Agri infrastructure created under the storage plan includes warehouses, custom hiring centers, processing units, and Fair Price Shops.
• The grain storage plan converges schemes like Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Sub Mission on Agricultural Mechanization (SMAM), and Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME).

Mains practice question

Discuss the significance of digitizing Primary Agricultural Credit Societies (PACS) and their role in strengthening the cooperative sector and rural infrastructure development in India. (150 words)

Static linkage

Primary Agricultural Credit Societies (PACS) are grassroots-level cooperative credit institutions crucial for rural credit delivery and agricultural development in India. The cooperative movement plays a significant role in the Indian economy, particularly in the agricultural sector.

Significance

The computerization of PACS represents a significant step towards digital transformation in the rural cooperative sector, enhancing operational efficiency, transparency, and service delivery for farmers. This initiative can strengthen financial inclusion and modernize the functioning of these vital institutions. The World's Largest Grain Storage Plan, by leveraging PACS for creating agri-infrastructure, addresses critical issues of post-harvest losses, food security, and rural economic development. The convergence approach of the storage plan optimizes resource utilization by integrating existing government schemes, fostering a more robust and resilient agricultural supply chain at the grassroots level.